CapitaLand China Trust

Welcome to Capital Land China Trust Third Quarter 2026 Business Updates Analyst Briefing. I am Debbie from the Investor Relations Team of CLCT and I have here with me Jerry, Chief Executive Officer, Lin Tong, Chief Financial Officer and Yeo Hong, Head of Investment and Portfolio Management of CLCT. Thank you everyone for joining us today. For today's session, we will begin with a brief presentation on our Third Quarter 2026 Business Updates Thereafter, we will move on to the Q&A segment. If you have a question, please use the raise hand function and I will pass the time to you. Now with that, I will hand over the session to Jerry. Jerry, please.

Thank you, Debbie. Welcome everyone to CLCT's 3Q2026 Business Update presentation. I will make the presentation today to cover our 3Q and then we'll leave some time for Q&A later. CLCT is of course the first and largest China-focused SREIT. We have diversified exposure to China's domestic growth and we uniquely offer some connectivity to both the SREIT and CREIT markets. Our total assets ending this quarter is $4.6 billion. We have eight retail malls, five business parks, four logistics assets. We predominate tier one and tier two city exposure. Our distribution yield today based on 12 months is 7.9%. Retail continues to be our largest and most retail resilient asset class at 70.6% GRI. Those are our bread and butter malls and they tend to be defensive. Our new economy assets that makes up a smaller part of our portfolio at 30%. So that gives us exposure to China's efforts to grow technology and innovation. So key sectors like semi-coin, electronics and ICT. In terms of key highlights for nine months 2026, our financial performance gross revenue 122.3 million RMB. and net property income 820.6 million RMB. Retail operations continue to be defensive. We have a high and stable occupancy. We experienced positive sales and traffic again for nine months of this year. And our reversions are reflective of the inflationary environment that's in China today. Our earlier more AEI effects have started to show fully in our numbers. In terms of capital management, We continue to buffer our operations and with the stronger renminbi trends, we see benefits to gearing, cost of debt, and therefore DPU. In terms of our overall gearing, there's a temporal uptick to 41% due to some timing difference between distribution funding and dividends from our underlying assets, but will come down by year-end. Our cost of debt is at 3.04% so that's a reduction from previous quarter and will continue to reduce with some scope to improve and that's a tailwind for CLCP. In terms of our financial results highlights breakdown, if you look at our portfolio gross revenue and MPI, they dropped by 4.8% and 3.9% respectively year-on-year. But on the same store basis, adjusting for Yu Huating, which was divested last year, our portfolio gross revenue at MPI is marginally negative at minus 1.5% year-on-year and minus 0.8% year-on-year respectively. For retail, revenue declined by 5.1% year-on-year. That's predominantly again due to rewriting. But on a same-store basis, the revenue is about flat. MPI for retail is about flat with improvements from incomes from more AEI. which a lot of it have been completed and the MPI have started to add on these nine months. We told her about 11 million MPI have come aboard for this year. And we had also some security deposit for features, but they were somewhat offsetted by continuous weakness at some of our assets for Mors, Sinan, GCM, Wang Jing and Ida Muntun. Business Park revenue and logistics revenue minus 4.1% year-on-year. We see improved occupancy at Shanghai Fengxian Logistics Park, offset by the lower performance at Hangzhou Cluster, and low rents entered in prior periods for the logistics parks flowing through in this nine-month period for 2026. to buffer the weakness of the new economy assets. To continue to focus on cost reduction, you can see that on a similar basis, we manage a minus 3% year-on-year cost reduction for the nine months of 2026. In SingDollar's terms, because the renminbi have strengthened over the year by 2.6%, our MPI for nine months in SingDollar's term have actually strengthened to 1.9% year-on-year. In terms of retail operations trends, traffic grew 1.9% and tenant sales grew 3.5%, with sales in third queue picking up gradually, especially during the September period. Overall healthy occupancy cost of 17.5%. during third Q mid-autumn period and national holiday period. It shows good sales growth momentum as consumers continue to demonstrate festival and events-driven shopping behaviour. For our retail sales, the trade cats that have been doing well for these nine months F&B, plus 2.6%. That's the biggest trade cap by RetailGRI. We have been introducing trending dining brands in the market, and we see well-established brands as well that continue to do well, like Haitilao and Haiti, and also some continued strength from Japanese sushi chains and bakeries. IT plus 10.2% year-on-year. This benefits from consumer electronics and as well as continuing expansion of more IT brands. There have been, in the third Q particularly, there have been more product upgrades and new models of premium smartphones, IT-enabled devices that come on the market and the Chinese consumer really enjoys participating in this trend of buying new products and we can see that directly picking up in terms of our IT sales in our malls. Shopping goods and apparels plus 37.3%. That's driven by our expansion in our malls. It is growing lifestyle trend. So we have Decathlon in Rock Square and under Guanjun in Shefu that opened and recorded solid sales for the nine months. Toys and Hobbies plus 39.5%. This speaks to the continued popularity of the collectibles toys market. We have strong double-digit growth from PopMart and Miniso. In our debt, we also included some information on Pokemon, 30th anniversary. Pokemon concept stores have also contributed strongly to our sales growth this quarter. with the anniversary of Pokemon. What's not written here is also to report supermarket also have done well. We have, as you know, we have upgraded our supermarkets over the years. And we recently also, besides the last year upgrading of Wang Jing, Xue Fu and Xizimeng, we have also upgraded another supermarket in Nohomola. that's a revamped Yonghui store that opened in July 2026. It opened to very strong sales, even topping the previously mentioned upgraded supermarket openings from last year. In terms of weaker categories, historically, we see fashion that was historically a weaker category, but the fashion trade actually have become firmer. It's a slight negative, minus 1% for 9 months year to date, but that's still much better than FY25, which was a high single digit negative for last year. In fact, this 9 months on a per square meter basis, the fashion trade is actually plus 5%. So who's leading this trend? Local brands. We have Boston, which I think I mentioned last time. Brands like Jack and Jones, Banianda, Balabala, which is a kidswear, are all doing well as the Chinese consumer gravitate towards local brands that provide value for money. The other trade category that is traditionally relatively weaker which is beauty. The good news is these nine months, we actually see flat growth for the beauty trade. When you compare to 2025, which was again a single digit negative, that's actually a positive. If you look at some of the key brands like Sephora, they actually registered positive single digit growth year on year. So that's a positive trend for some of our weaker sales trade categories. In terms of retail occupancy, our malls have been resilient. You can see our retail occupancy of 97.2%. We're almost almost above the occupancy of 95% except for Sinan. But even for Sinan, we see improved leasing to 89% for the mall. We've been working hard at it and we think we have a good chance to see occupancy at 90% by year-end. We did a small layout reconfiguration at Rock Square. And that's 700 square meters of FFVD space. Let me just go to that chart. At level three. Okay, at level three. And that smaller configuration helped us to improve our sales efficiency. and also improve our shopper traffic flow, as well as the mix of tenants in the F&B area. With that change, we managed to increase rents by about 6%. So for more, we constantly find some new ways to make sure that we can deliver some organic growth to some areas. For the retail rental reversion for malls, I mentioned before that China is still in a deflationary environment, so it's a bit more challenging to raise rents. Our retail reversions at about minus three is at similar levels to previous quarters. Business Park's overall occupancy is 85.7%. That's an improvement from second Q with the same trends of weakness in Hangzhou and AIT in Xi'an. Our BP assets generally outperform their submarkets, continue to outperform their submarkets despite the general soft leasing environment for business parks. AIT's occupancy drop was mainly from a bigger ICT tenant that did not renew upon aspiring and working to backfill that. Hangzhou Phase 1 and Phase 2, a challenging market supply-wise. Our occupancy has improved with our aggressive leasing despite the tough market. Overall, BP reversions are about minus 12%. Logistics, smallest part of our portfolio, continue to be at about full occupancy. Reversions at about minus 1 reported previously. That has improved from obviously the last two years of minus 20. Going forward, we feel that the logistics business and rents have more or less stabilized in our locked portfolio. Of course, the rental reversions that we sort of suffered from last year would worked its way into our numbers actually this year. Going forward for next year, we feel that the yen level and the revenue level will stabilize. Next, I will invite Ling Tong to talk about capital management highlights.

Okay, thanks Jerry. Capital management remains as an area of resilience for CLCT. We maintain a healthy balance sheet and actively lowering our cost of borrowing and therefore protect distribution stability across FX and interest cycles. As at September, 2026, CLCT's aggregate leverage is 41.1%. This is due to temporal the loan drawdown because we have paid our first half distribution and we expect the reduction of gearing when more dividend flow through from China in Q4 this year. And due to the currency demand from the strong export in China and also PBOC's guidance to stabilize Renminbi, Renminbi has appreciated about 3.6% in nine months in 2026. Although we had earlier stepped up our natural hedging and did not fully enjoy the positive pass-through from the currency appreciation, this gearing has proven to be quite resilient and it will form a very good base for our capital management going forward. We are very happy to report that our year-to-date average cost of debt has improved further to 3.04% in 3Q2026. This represents close to 40 basis point reduction year-on-year and it actually was a further improvement from 3.06% that was reported last quarter. This translates to close to about 14% interest expense reduction year-on-year. And you were probably aware that we have always actively shifting our borrowing from Sing to Renminbi. So as at end of September, 2026, we had 70% of our debt in Renminbi denomination, which is naturally hedging our underlying assets. There are tangible benefits from our proactive finance management. And in today's interest rate environment, CLCT is quite uniquely positioned to take advantage of stable RMB and also the stable RMB interest rate. In the recent interest rate volatility, RMB interest rate has actually stayed very stable. That effectively shoots CLCT from interest rate volatility And when SingDollar rate was higher in September 2026, Renminbi's long-term interest rate was between 60 to 90 basis points lower than SingDollar's equivalent five-year rate. That means that going forward, CLCT can actually continue to enjoy low interest rate environment offered by Renminbi Borrowing. So our trading 12-month interest coverage ratio is maintained at 3%. That's quite stable and resilient and also fully comply with MAS ICR stress test scenario. And CLCT continue to manage our interest rate by maintaining high percentage of hedge. At this moment, RMB interest curve is actually in our favor. We can effectively fix our RMB interest rate without paying up premium for our hedging. Next slide is our debt maturity. CLCT's debt maturity profile remains very well managed. We just redeemed our FTZ bond of RMB 600 million. That bond was previously bearing the interest coupon of 3.8%. So we have refinanced it with our credit facility, which effectively costs 2.3%. So that is actually interest savings that will come in in the period to come. So we are actively working on other refinancing option to early refinance our loans and bonds that is due in 2027. CLCT has a wide range of access to various funding options, both in Singapore and in Greater China. So we had a good banking relationship and has secured competitively priced bank loans in Singapore as well as in China. In the past, we have issued SGD and RMB denominator median term note in Singapore. And we do intend to continue expanding our debt market assets in Singapore and Greater China. So as I mentioned that we have 70% of our debt is in RMB. So we actually do so through direct RMB borrowing as well as we borrow in SingDollar and swap into RMB to enjoy the low RMB interest rate environment. So in summary, CLCT is actively and prudently managing our debt structure, and we have delivered healthy balance sheet and low cost of borrowing, as well as strong resilience to the rate and the FX environment. So I will return the presentation to Jerry. Thanks. Thanks, Lincoln.